How to use asset finance

A way of funding capital expenditure on tangible, moveable assets, using the asset as the primary source of security. Funding terms and products are structured around the working life of the asset being funded.

Allows the borrower to obtain legal ownership of the asset at the end of the agreement, by exercising an option to purchase having complied with the terms of the agreement.

Hire Purchase is a way of spreading the cost of capital investments for your business – with straightforward documentation and regular repayments. You can acquire ownership of the assets at the end of the agreement.

Finance Lease agreements enable the borrower to spread the cost and the VAT of capital investments, with regular rentals under a finance agreement.

Under a lease, legal ownership of the assets cannot pass to the borrower, but the borrower has quiet enjoyment of the assets throughout the funding period. VAT is applied to each rental rather than being payable upfront.

An asset loan is a funding agreement where the lender may not wish to take title to the assets being funded – but will seek an alternate form of security in support of the lending. This usually occurs where there is no tangible security to be taken from the goods in themselves (for example IT Software) or refinancing assets that have been in situ and used by a company for some time.

An Operating Lease is a funding agreement where the borrower hires assets which HSBC owns and pays a rental to HSBC for the use of the assets for an agreed period of time. Usually only applicable to a specific selection of asset types, this funding method assumes the assets will be handed back to HSBC at the end of the agreed funding term.

• Funding for IT hardware and software
• Support for businesses in monitoring, tracking and maintaining IT assets
• Funding technology for service solutions
• Ability to support Technology-as-a-Service solutions

• Bespoke solutions for large complex asset finance requirements
• Typical funding requirements range from £5m to £50m but can be higher
• Solutions include but are not limited to commercial marine, renewables energy projects long term contracted receivables and revolving tangible asset borrowing based loans.

• Technical understanding of the funding of a wide range of vehicle types